Omaha-ConAgra Foods Inc. earnings continue to see a giant boost from its fertilizer business, along with other commodities within the company’s Trading and Merchandising (T&M) unit. Operating profits from the T&M segment were up 384.6 percent for the first quarter ending Aug. 26, 2007, versus the year-ago quarter. T&M profits were $75.6 million on sales of $327.9 million, versus the year-ago $15.6 million and $205.4 million, respectively. The company singled out fertilizer and energy trading as being very successful in capitalizing on market opportunities. By comparison, ConAgra-wide net income was up only 5.2 percent, to $175.4 million ($.36 per diluted share) on sales of $2.95 billion, versus the year-ago $166.7 million ($.33 per share) and $2.69 billion, respectively. ConAgra believes it can attain a fiscal year EPS of $1.48. In addition, ConAgra believes second quarter EPS will be in line with year-ago levels, and sees a likely slowdown in the quarter from its T&M business.
Transparency Across the Fertilizer Value-Chain